CEDA faces funding shortfall, launches resource mobilisation project
Tuesday, March 11, 2025 | 970 Views |
CEDA Headquaters. PIC MORERI SEJAKGOMO
. As of November 2024, the development finance institution had funded 841 businesses for a total investment of P229 million. This support primarily benefited the services (50%), agribusiness (24%), property (16%), and manufacturing (10%) sectors, leading to the creation of 1, 535 jobs and sustaining an additional 468 jobs. In pursuit of an inclusive economy, youth entrepreneurs received P5 million in funding for 172 businesses, while women-led enterprises secured P17 million across 514 businesses. Trade and Entrepreneurship minister, Tiroeaone Ntsima, said these initiatives reflect CEDA’s commitment to empowering historically underrepresented groups in business. He further said the agency faces a funding shortfall despite these achievements. For the 2024-2025 financial year, CEDA received P310 million in government subvention, well below its P500 million in project approvals. “This funding gap limits CEDA’s ability to meet the growing demand for its services,” Ntsima said. “In response, the agency has launched a resource mobilisation project to explore alternative funding sources and diversify its capital structure,” he added.
For the 2025-2026 financial year, CEDA has been allocated P309 million, a slight decrease from the previous year, further tightening its financial position. Meanwhile, the Local Enterprise Authority (LEA), which has been allocated P146 million for the 2025-2026 financial year, has set an ambitious target to increase Small, Medium and Micro Enterprises (SMME) contributions to GDP from 14.3% (2018) to 17% by 2026. This strategy is designed to boost economic diversification and job creation, reinforcing Botswana’s long-term development goals.
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